The Different Types Of Organization Structures: Matrix Structure

Append below describes the advantages and disadvantages of the following type of organization structure:

· Functional Structure

· Divisional Structure

· Matrix Structure


Matrix structures are often found in organizations pursuing growth in dynamic and complex environments

Major Advantages Of Matrix Structure

· More interfunctional cooperation. The matrix provides a way of coordinating different functional contributions to serve specific program needs

· Flexibility. The matrix makes it easier to add, remove and change the focus of teams to reflect new program directions or basic changes in business size.

· Customer service. The customer or client of a matrix structure always has a program manager available to respond to questions, provide status reports and address problems.

· Better accountability. The matrix clearly identifies program managers who can be held accountable for performances results; this helps top managers stay informed about what is going on and why

· Improved decision making. The matrix forces decision making and problem solving down to the team level, where the best information exists.

· Improved strategic management. The matrix helps keep top managers free of routine decisions and enables them to devote their time to more strategic management concerns.

Major Disadvantages Of Matrix Structure


· Power struggles, which may result from the two boss system.

· Team members may become too focused on themselves and develop “groupitis ” losing sight of important goals.

· Often creates increased costs as overhead rises in the form of extra salaries for program managers.

Also refer to articles on Functional & Divisional Organization Structures


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